A search and seizure action under section 132 was conducted at premises of assessees on 18-3-2010.\u00a0 During course of search, cash and fixed deposit receipts [FDRs] were seized.\u00a0 Assessees had made an application for release\/adjustment of cash and FDRs on 28-4-2010. Assessing Officer passed an assessment order under section 143(3) and levied interest under section 234B without making any adjustment of seized cash and FDRs against tax liability of assessees.Commissioner (Appeals) held that assessees were entitled to adjustment of seized Cash\/FDRs against self-assessment tax liability from date on which period of 120 days was over in terms of section 132B and had upheld action of Assessing Officer in charging interest under section 234B. On appeal the Tribunal held that\u00a0 application made by assessees was well within prescribed period, 30 days from end of month in which assets were seized.\u00a0 Further, seized cash and FDRs were from disclosed source of income from respective assessees only. As per section 132B(1), Assessing Officer ought to have adjusted seized cash and FDRs against tax liability while framing regular assessment and, therefore, there was no question of levy of interest under section 234B up to 15-9-2010. Therefore, Commissioner (Appeals) was not justified in confirming interest charged under section 243B. The\u00a0 Assessing Officer is\u00a0 directed to rework computation in accordance with provisions of law. Tribunal also held that FDRs cannot be treated as money’ referred in section 132B(4)(b). Accordingly\u00a0\u00a0 mere seizure of FDRs, assessee had not suffered any pecuniary loss by way of loss of interest, no interest under section 132B(4) could be granted to assessee. (AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 234B : Interest-Advance tax-Search-Cash and fixed deposit receipts-Releasee of seized assets-Application was made for release \/ adjustment of cash and FRSs-No interest can be levied in the course of regular assessment-Payment of interest on seized FDRs)-FDRs cannot be treated as money as referred in section 132B(4)(b) and since by mere seizure of FDRs, assessee had not suffered any pecuniary loss by way of loss of interest, no interest under section 132B(4) could be granted to assesse.[S. 132, 132B(4)(b)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48780","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cGM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48780"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48780\/revisions"}],"predecessor-version":[{"id":48781,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48780\/revisions\/48781"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}